NAIROBI, Kenya – The Judiciary and ten other government entities are on the spot for failing to account for more than Sh2 billion in public and donor funds, raising fresh concerns over financial discipline and transparency in state operations.
In a report covering the 2023/2024 financial year, Auditor-General Nancy Gathungu detailed widespread failure among ministries, departments, and agencies (MDAs) to provide documentation for their expenditures—an omission that may have breached public finance laws.
Of the total amount flagged, Sh783.9 million is tied to spending by MDAs, while Sh1.26 billion relates to donor-funded projects.
The Auditor-General warns that such unsupported expenditures expose public resources to potential misuse, loss, and theft.
“The failure by entities to fully support payments casts doubt on the authenticity of the reported expenditure,” said Gathungu. “Such practices reflect weak internal controls and poor governance.”
Judiciary, Key Ministries Implicated
The Judiciary alone could not provide supporting records for Sh406.7 million.
That amount includes Sh182.4 million in personal allowances, Sh131.3 million in leave allowances, and Sh93 million spent on foreign travel.
The State Department for Economic Planning failed to justify training expenses worth Sh195.2 million, while the Department of Social Protection had Sh986 million in unsupported claims for domestic travel and subsistence.
It also lacked documentation for Sh41.3 million in cash payments and Sh25.3 million in fuel and lubricant costs.
Other departments under scrutiny include Irrigation (Sh9 million in fuel costs) and Mining (Sh7.6 million in goods and services).
Donor Projects in the Red
Several high-profile donor-funded projects were also flagged.
The Bogoria Silali Geothermal Project posted the largest unsupported amount, at Sh980.9 million—split between National Oil of Kenya (Sh535.6 million) and Galana Energies Ltd (Sh445.3 million).
The Financing Locally Led Climate Action Programme had Sh123 million in unsupported domestic travel and subsistence allowances.
In the education sector, the Secondary Education Quality Improvement Project failed to account for Sh60.3 million, with the Auditor noting a lack of supervision on infrastructure works due to the absence of a clerk of works.
The Kenya Rural Roads Authority also had questions to answer over Sh35 million in consultancy fees under the Improvement of Rural Roads and Market Infrastructure project.
Other Projects Under Scrutiny
Further irregularities were found in projects funded by development partners:
- The USAID Boresha Jamii Project recorded Sh23.6 million in unsupported fringe benefits.
- The Lake Victoria Water and Sanitation Project was flagged for Sh17.8 million in overpayments.
- The Isebania–Kisii–Ahero Road Rehabilitation incurred Sh15 million in questionable compensation to individuals who had erected structures on road reserves.
- The Africa Centre of Excellence in Insects for Food and Feed failed to support Sh2.9 million in field expenses.
- The Global Fund TB Programme lacked justification for Sh2.8 million in training services.
- The Horn of Africa Groundwater for Resilience Project could not explain Sh1.5 million in fuel expenses.
One of the most striking findings involved the Technical Support Programme, which processed Sh914.5 million in refunds to the European Union without backing documentation.
Legal Implications
The report cites violations of both the Public Finance Management Act, 2012, and the Public Audit Act, 2015.
Under the latter, failure to provide records without justification—or the submission of misleading information—is a criminal offence, punishable by a fine of up to Sh5 million, three years in prison, or both.
The Auditor-General has recommended immediate corrective action, including tighter oversight and strengthened internal controls to safeguard both public and donor funds.
